Questions arise over what can be purchased with spill money

Monday

Feb 25, 2013 at 10:57 AM

BATON ROUGE — With Louisiana expected to receive somewhere between $2 billion and $6 billion from fines paid as a result of the 2010 BP oil spill, queries about eligible uses by state government have cropped up.

Jeremy Alford Capitol Correspondent

BATON ROUGE — With Louisiana expected to receive somewhere between $2 billion and $6 billion from fines paid as a result of the 2010 BP oil spill, queries about eligible uses by state government have cropped up. Can the money be used to feed a starving state budget that is expected to lose more than $1.3 billion next fiscal year? “On the surface, the answer is no,” said Chris Macaluso, coastal outreach coordinator for the Louisiana Wildlife Federation. “But there is concern that it might be used for other needs not connected to the coast. Look what happened last year.”During the 2012 regular session, lawmakers added a provision to state law requiring that any BP fine money be deposited into the Coastal Protection and Restoration Fund, but only after failing to add more flexibility in how the money can be spent.Louisiana is getting a share of the Clean Water Act fines because Congress passed the RESTORE Act last year. Earlier this month, a federal judge signed off on $1.4 billion in civil and criminal fines for Transocean for its part in drilling the exploded well. BP has also already paid $4 billion in criminal penalties, and its civil fines could exceed $21 billion. As the money becomes available, 80 percent will be placed in the federal Gulf Coast Restoration Trust Fund, and 20 percent will go to the federal oil-spill efforts.From the federal trust fund, 30 percent will be used by the recently-created Gulf Coast Ecosystem Restoration Council to implement a comprehensive recovery plan for the five affected states. An additional 30 percent will be channeled to the states in a manner that is consistent with the comprehensive plan. Another 5 percent is for research, technology programs and grants. But it is the remaining 35 percent, which Louisiana must share with the four other Gulf states where oil washed up, that is drawing scrutiny. Louisiana’s share of that pot could range from $300 million to more than $1 billion.According to staffers from the office of Sen. Mary Landrieu, where the RESTORE Act originated, Louisiana’s share comes with eligibility requirements spread out over 10 areas.While the eligible uses only apply to the area within Louisiana’s coastal zone, plus 25 miles, the seafood and tourism marketing categories could potentially result in money being distributed in northern parishes.Landrieu said Louisiana’s coast is in line to receive the lion’s share of money out of the federal trust fund, “but we need the funds to get to work on restoration.”Eligible uses under the RESTORE Act include:-- Restoration and protection of the natural resources, ecosystems, fisheries, marine and wildlife habitats, beaches and coastal wetlands.-- Mitigation of damage to fish, wildlife and natural resources.-- Implementation of a federally approved marine, coastal or comprehensive conservation management plan, including fisheries monitoring. -- Workforce development and job creation.-- Improvements to state parks in coastal areas affected by the Deepwater Horizon oil spill.-- Infrastructure projects benefitting the economy or ecological resources, including port infrastructure.-- Coastal flood protection and related infrastructure.-- Planning assistance.-- Promotion of tourism in the Gulf Coast region, including recreational fishing.-- Promotion of the consumption of Gulf Coast seafood.With only a simple majority vote needed to reverse the state law liming the oil-spill money, state Rep. Simone Champagne, R-Jeanerette, said she will ask the Legislature to pass a constitutional amendment in the spring with the same language that exists now in statute. She said it is a stronger form of protection, since it would take a two-thirds vote of the Legislature and voter approval to change the constitution.The regular session convenes April 8.

Jeremy Alford can be reached at jeremy@jeremyalford.com.

Never miss a story

Choose the plan that's right for you.
Digital access or digital and print delivery.